What happens if Bonchon's representative does not have significant responsibility for the control, management or direction of the business?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If an individual, you must either serve as or designate a "General Manager" for your franchised Business. If you are an individual, then you may serve as General Manager. If you are an entity, then your Operating Principal must serve as or designate a General Manager. If your Operating Principal will have on-site management responsibility over the Restaurant's daily operation on a full-time basis, then we will consider your Operating Principal to be the General Manager. Before designating and engaging the services of the General Manager, you must identify such individual to us; furnish information to us regarding the candidate's background, experience and credentials; and, secure our prior written approval of the candidate, which we will not unreasonably withhold or deny. Your General Manager, who will have full-time day-to-day management responsibility for your Bonchon Business, will exercise on-premises supervision and personally participate in the direct operation of the Business. Your General Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof.
Additionally, you must employ a second full-time manager to serve as your manager (the "Manager"). Your Manager will also have day-to-day management responsibility for your Bonchon Business, and will exercise on-premises supervision and personally participate in the direct operation of the Business. You Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof.
If this Agreement is for the opening of your (or your affiliates, collectively with you) third Bonchon Business, then you must designate an "Area Manager" to us in writing prior to opening your third Bonchon Business, who will oversee the operations of each Bonchon Restaurant that you and/or your affiliates own and operate. The Area Manager must be certified to manage multi-unit operations. Your Area Manager must secure the requisite certifications and attend and successfully complete the training that we prescribe in Section 7.02 above. The requirement to designate an Area Manager
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if the franchisee is an individual, they must either serve as or designate a General Manager for their franchised business. If the franchisee is an entity, then their Operating Principal must serve as or designate a General Manager. If the Operating Principal has on-site management responsibility over the Restaurant's daily operation on a full-time basis, then Bonchon will consider the Operating Principal to be the General Manager.
Before designating a General Manager, the franchisee must identify the individual to Bonchon, provide information regarding the candidate's background, experience, and credentials, and secure Bonchon's prior written approval, which Bonchon will not unreasonably withhold or deny. The General Manager will have full-time day-to-day management responsibility for the Bonchon Business and will exercise on-premises supervision and personally participate in the direct operation of the Business. The General Manager must also satisfy Bonchon's initial training requirements.
Additionally, the franchisee must employ a second full-time manager to serve as their Manager. The Manager will also have day-to-day management responsibility for the Bonchon Business and will exercise on-premises supervision and personally participate in the direct operation of the Business. The Manager must also satisfy Bonchon's initial training requirements. If the agreement is for the opening of the franchisee's (or their affiliates) third Bonchon Business, then they must designate an Area Manager to Bonchon in writing prior to opening their third Bonchon Business, who will oversee the operations of each Bonchon Restaurant that they and/or their affiliates own and operate. The Area Manager must be certified to manage multi-unit operations and must secure the requisite certifications and attend and successfully complete the training that Bonchon prescribes.